The first step in the process is to get fully pre-approved by an underwriter. An underwriter will generally look at 3 things to pre-approve you:
- The amount of down-payment you have and the source of the down-payment relative to the purchase price and your assets.
- Your employment history and debt-to-income ratios based on your current income and liabilities.
- Your credit history and FICO scores.
No two people have the exact same situation, so there are many nuances to the process. Nevertheless, these are the three legs to the stool when it comes to getting pre-approved. You will typically need to supply copies of the following:
- Last two years tax returns (all schedules) and W2′s.
- Most recent month’s worth of paystubs.
- All bank / asset accounts (2 months history, all pages).
- If you own other property, need copies of recent mortgage statement, property tax statement, insurance, and rental agreements.
- Copy of driver’s license and Social Security card
Once you have filled-out the basic online application that we make available online and gather these documents, we can have you approved to buy a home in less than two weeks!
Many people wait to get approved until the last minute. That is a big mistake and puts you at a disadvantage in the market. At American Capital Home Loans we can do a “TBD” (to be determined) approval BEFORE you have picked a property out. That means that your offer is as good as cash pending an appraisal of the property!